Reforms to improve Phl ranking in Open Budget Survey

The passage of a bill which seeks to institutionalize reforms in the country’s budget system will raise the Philippines’ ranking in the Open Budget Survey of the International Budget Partnership (IBP), according to the Department of Budget and Management (DBM).

In a statement, Budget Secretary Benjamin Diokno said the approval of the Budget Reform Bill currently pending in Congress would strengthen fiscal transparency and make DBM one of the top budget institutions in the world.

Diokno said the passage of the measure would help the Philippines increase its Open Budget Index (OBI) score in the Open Budget Survey to 75 from 67 in 2017.

“When we pass the Budget Reform Bill, we will easily reach 75 points. We aim to be one of the top budget institutions around the world,” Diokno said.

The Budget Reform Bill seeks to shift the budget system from a multi-year obligation budget into an annual cash-based budget system.

The bill will also push for the adoption of an integrated financial management information system, which will serve as a single portal for all financial transactions of the government, reflecting real-time information on the country’s budget and finances.

Rep. Karlo Nograles, chairman of the House committee on appropriations, cited the measure as an “aggressive reform” that will improve budget oversight and introduce participatory mechanisms in Congress.

Currently, the Philippines ranks first in Asia and 19th in the world in the 2017 Open Budget Survey after securing a score of 67. This is three points higher than its score of 64 back in 2015.

Diokno said the country’s current score surpassed the Philippine Development Plan (PDP) target of 64, and is equivalent to the 2019 PDP target of 67.

“We plan to improve and do even better and so our DBM targets are much higher – 69 by 2019 and 71 by 2021,” Diokno said.

To improve the country’s budget transparency rating, Diokno said the DBM is also creating a Fiscal Openness Working Group and organizing an Open Government Regional Dialogue Series.

He said the DBM would submit to the Congress the medium term fiscal program – which serves as basis for the national expenditure program – by March 15 to ensure there will be enough time for review and deliberation.

“Right now, we are looking at how to expand participatory mechanisms from the local government level,” Diokno said.

The Open Budget Survey is a biennial survey conducted by the International Budget Partnership which assesses budget transparency based on the amount and timeliness of budget information governments make available to the public.